In terms of paid advertisement so far, I have tried Facebook (for Arithmetic Basics), and Google Adwords (for Reader+ for Gmail). Confirming the results of others on the 'net, these mediums for typical app advertising just don't make sense. Basically I was paying something close to a dollar for each click on the ad, and only a small fraction of the ad clicks actually resulted in an actual download.
I've tried to create an iAd campaign with Apple, and I think it just got approved tonight based on an email I received from Apple, but the iAd Workbench is telling me one of my "lines" may need attention and that I have to assign at least one banner. I thought I had done that already, but maybe it just takes a while for the dashboard to get updated properly.
My research into iAd shows that it is certainly cheaper than Facebook and Google, but probably no more effective in terms of getting downloads for a given price. See for example this analysis from Raymond Law:
http://rayvinly.com/iad-workbench-campaign-performance-analysis/#!prettyPhoto
His app (Badminton TV) looks pretty cool, and he got a bunch of clicks on his ad, but zero actual downloads! I suspect that most ads get shown in video games and are just clicked by accident. I was able to select what sorts of apps to show my ad in (no video games!) so hopefully I'll fare a bit better in terms of downloads. We shall see. I'll let the experiment run until the end of the month and see how it goes.
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